Cont JSA & Rental income

Brighty

Hi all

Hopefully a quick one

Are you eligible for contribution based JSA if you recieve rental income? I know savings & rental property equity is ignored for cont based, but what about income?

Thanks

Regards

Torry_Quine

Brighty wrote: »

Hi all

Hopefully a quick one

Are you eligible for contribution based JSA if you recieve rental income? I know savings & rental property equity is ignored for cont based, but what about income?

Thanks

Regards

Yes you would still get it. It doesn't matter about any income.

Mersey_2

Yes, as entitlement derives from your NICs and it is not a means-tested benefit.

Brighty

Thanks all, hopefully won't need it, just weighing up my options

Topcat1982

Torry_Quine wrote: »

Yes you would still get it. It doesn't matter about any income.

Is this right?

The OP is a self employed landlord, surely that income has to be declared to HMRC and it would reduce/stop them claiming JSA.

Mersey_2

Topcat1982 wrote: »

Is this right?

The OP is a self employed landlord, surely that income has to be declared to HMRC and it would reduce/stop them claiming JSA.

Income does not affect contribution-based JSA, as it is not a means-tested benefit.


Entitlement derives from the claimant's past NICs.

Witless

Mersey wrote: »

Income does not affect contribution-based JSA, as it is not a means-tested benefit.


Entitlement derives from the claimant's past NICs.

Not totally sure about that - occupational pension certainly impacts on it (at least it does here: England/Wales, Scotland & Northern Ireland have slightly different rules but the basics are the same AFAIK)

Jobseeker’s Allowance (JSA) has two components:

Contribution-based Jobseeker’s Allowance (JSA(C))
JSA(C) is not means tested but some earnings related income from part-time work and some pension income can affect the amount of benefit paid.

2.4.1 Pensions

The amount of JSA(C) payable is reduced by any amount of certain occupational pensions or personal pensions over £50 per week, irrespective of a person’s age.

2.4.2 Earnings disregard

For JSA(C), £5 per week of earnings is disregarded.

The exception to this, with £20 disregarded, is where a person is an auxiliary coastguard or part-time fire-fighter or part-time lifeboat crew or a member of the Territorial Army Reserve.

JSA(C) will be reduced pound for pound by the amount of earnings received over the disregarded amount.

Earnings of a partner are ignored for JSA(C).


http://www.lawcentreni.org/EoR/benefits-and-tax-credits/jobseekers-allowance.html

I suppose it depends on when rental income is defined as income?

Mersey_2

Er, thanks (I think) - although the Q was about rental income and I repeat: income does not affect [entitlement to] contribution-based JSA, as it is not a means-tested benefit (as your link repeats).


I was curious - as I've never known a single JSA claimant receive a pension (why would they if they're of working age), I looked it up. There were no recent figures available, but the then Employment Minister Chris Grayling 5 years ago in Hansard in a written reply to the Q as to the number of claimants not receiving the full amount of JSA, he stated that of then 2.3 m claimants, the income disregard applied to fewer than 14,000 in E & W or 0.5% and 1.8% did not due to overpayment recovery of other benefits.

p00hsticks

Mersey wrote: »

I was curious - as I've never known a single JSA claimant receive a pension (why would they if they're of working age)

I think the most common cases would be of ex-servicemen and women who get a pension immediately after leaving the services.

Witless

Mersey wrote: »

Er, thanks (I think) - although the Q was about rental income and I repeat: income does not affect [entitlement to] contribution-based JSA, as it is not a means-tested benefit (as your link repeats).

Have a look in The DMG (Decision Maker's Guide - last updated 28 September 2017) Chapters 20 & 21 Paras 20015, 21060, 21081 & 21082
https://www.gov.uk/government/publications/decision-makers-guide-vols-4-5-6-and-7-jobseekers-allowance-and-income-support-staff-guide

JSA(Cont) - additional conditions
20015 In addition to the conditions at DMG 20003 1. - 7., to be entitled to JSA(Cont)1 a
person must
1. satisfy contribution conditions (see DMG 21051 et seq) and
2. not have earnings in excess of the prescribed amount (see DMG 21081 et
seq)
Vol 4 Amendment 31 June 2010

21060 The contribution-based conditions for entitlement to JSA(Cont) are that the claimant
must1
1. satisfy the first contribution condition (see DMG 21067 - 21071) and
2. satisfy the second contribution condition (see DMG 21074 - 21076) and
3. not have earnings higher than the prescribed amount (see DMG 21081 -
21082)

Prescribed amount of earnings
21081 Claimants are not entitled to JSA(Cont) for any week that they have earnings that are higher than the prescribed amount (see DMG 21060 3.)
1
.
1 JS Act 95, s 2(1)(c)
21082 The prescribed amount of the claimant's earnings is calculated by using the formula1
(A + D) - £0.01 where
1. A is the age-related amount that is appropriate to the claimant's age and
2. D is any earnings disregard appropriate to the claimant as in2
2.1 DMG 25082 - 25083 (two payments to be taken into account for the
same week because of the impracticability rule, first of two payments
due before the date of claim) and
2.2 DMG 26102 - 26103 (disabled persons, repeat claims) and
2.3 DMG 26108 (lone parents) and
2.4 DMG 26114 - 26133, (carers, special occupations, earnings from one
or more occupations, JSA(IB) and IS - couples, amount of disregard, earnings paid for employment which has been interrupted, earnings payable outside UK, earnings paid in a foreign currency) and
2.5 DMG 26417 (effects of awards for unfair dismissal) and
2.6 DMG 26642 - 26647 (remunerative work, P/T work and payments on
termination) and
2.7 DMG 27471 (Earnings from self-employment that has ceased).
1 JSA Regs, reg 56(1) & (2); 2 reg 99(2) & 101(2) & Sch 6, para 1-16 & 19i

Example
Darren is entitled to an age-related amount of £67.50 a week.
He is entitled to a disregard of £5.00 a week.
Applying the formula - (£67.50 + £5.00) - £0.01 = £72.49.
If Darren has earnings of more than £72.49 a week he is not entitled to JSA(Cont).
1 SS (Conts) Regs, reg 60-65; SS (Crediting etc) Regs, reg 4

Vol 4 Amendment 46 June 2015

As per previous post I think it depends on whether the DM regards rental income as 'earnings'.

p00hsticks wrote: »

I think the most common cases would be of ex-servicemen and women who get a pension immediately after leaving the services.

Servicemen, police, fire brigade, teachers, lecturers, politicians & councillors (AFAIK), NHS, Local Govt (and many others) are all entitled to immediate pensions depending on meeting the criteria whether age (frequently 60), length of service (30 to 40 years) or combination of both ( age plus LGPS membership in whole years had to be added together to equal at least 85)